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TL;DR
The Nasdaq Composite dropped 5.52% on Nov. 5, its steepest one-day decline since April 2025, while the Nasdaq-100 fell 6.36%. Investors focused on whether election results could slow or raise the cost of planned AI data center construction, though no new federal law had passed and much of the expected impact remained speculative.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its biggest one-day drop in 19 months, as investors weighed whether US midterm election results could slow or increase the cost of planned AI data center projects. The Nasdaq-100 fell 6.36%, and Reuters estimated that the decline erased about $2.5 trillion in market value from that index’s companies.
Nasdaq’s closing data put the Composite at 24,315.00, down 1,421.51 points. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. The Composite’s decline was its steepest since April 4, 2025, when it fell 5.82% during the tariff-related market shock. It ended 11.9% below its Oct. 6 record, placing it in correction territory, commonly defined as a decline of at least 10% from a recent peak.
The downturn was concentrated in chips and companies tied to data center construction. The PHLX Semiconductor index fell 12.25%. Reuters reported that Nvidia shares lost 9% and AMD fell 17%, while several data center operators dropped more than 14%. Amazon and Alphabet declined 2.2% and Microsoft fell 3.6%, Reuters reported. The VIX, a measure of expected stock-market volatility, recorded its largest increase since December 2024, according to the news agency.
The election results became a focus because congressional committees and state governments influence oversight, permitting, utility regulation and tax incentives. Analysts cited by Reuters and The National said investors were considering whether new political leadership could mean more scrutiny, fewer incentives, or developers bearing a larger share of electricity and water costs. Those are investor concerns and forecasts, not confirmed policy changes.
Infographic 01 · The day in numbers
The Nasdaq's worst day in 19 months
Chips and data center builders led the fall. The dollar figure in the headlines belongs to the Nasdaq-100, the 100 largest non-financial companies on the exchange.
Nasdaq Composite on Thursday, 5 November 2026: down 1,421.51 points to 24,315.00. The biggest one-day fall since 4 April 2025, 19 months earlier.
The five worst Composite days since March 2025
Daily change, closing values
Sources: Nasdaq Global Indexes (COMP, NDX, SOX closing data, retrieved 6 Nov 2026) · Reuters, 5 Nov 2026 (via The Straits Times). History checked back to 25 Mar 2025. Market value is Reuters’ calculation. Not investment advice.
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Election Risks Reach AI Infrastructure
The market reaction shows that investors are treating the conditions for building AI infrastructure as part of the technology sector’s financial outlook. Data centers require substantial electricity, water, land and grid connections. If projects face longer approval processes or higher operating and construction costs, developers and the large technology companies that use their capacity could face delays or lower expected returns.
The immediate losses also matter to savers and investors because major technology and semiconductor companies make up a significant part of widely followed stock indexes. A sharp fall in these shares can weigh heavily on index performance, even when the pressure is concentrated in a particular group of companies. The day’s decline, however, does not establish that data center construction will stop or that companies’ long-term prospects have changed.
The estimated $2.5 trillion loss applies to the Nasdaq-100, not every company listed on Nasdaq. The figure describes a change in market value based on share prices; it is not a measure of cash withdrawn from the companies. Stock prices can move sharply and losses can deepen or reverse. This report is not investment advice.
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From Midterm Results to Market Selloff
The selloff followed a mixed two-day sequence. On Wednesday, Nov. 4, the Nasdaq Composite rose 1.44%. Reuters reported that data center operators and power companies fell that day while Amazon and Microsoft each gained about 6% during the session. One market interpretation was that existing data centers could become more valuable if fewer new facilities were built. On Thursday, that view gave way to a broader selloff that also hit major technology companies.
According to The National, Democrats won control of both chambers of Congress and flipped five governorships: Texas, Georgia, Ohio, Iowa and Nevada. The outlet’s analysis of Cleanview project data said those states account for 37% of planned US data center capacity, with Texas representing 22.8%. The incoming Texas governor has promised a pause on new data center construction and greater community input, while incoming governors in Georgia and Ohio have pledged pauses on large projects, The National reported.
State-level authority is relevant because governors appoint utility regulators and help shape state incentives, while local governments can affect siting and permits. The source report also said local voters considered data center measures in ten states and that unofficial results showed 46 of 47 measures opposing projects through bans, size limits or pauses. Those results were described as unofficial, and the measures do not by themselves establish a nationwide policy shift.
““deepest one-day drop since ‘Liberation Day’ in April 2025””
— Reuters
Policy Changes Remain Unsettled
The election results do not themselves change federal law or halt data center projects. The source material reports that no new federal law had passed and that President Trump retains veto power. Several analysts expected political gridlock rather than sweeping changes, but the eventual committee agenda, legislation and state-level decisions remain unknown.
A UBS estimate cited in the source material suggested about 30% of planned 2028 capacity additions could be at risk. That is an analyst estimate, not a confirmed project cancellation or government decision. It is also unclear how many proposed facilities would be delayed, redesigned, relocated or built under different terms, and how much of Thursday’s share-price move reflected election concerns rather than other market factors.
Permits, Oversight and Project Plans
Investors and companies will watch for the incoming Congress to set committee priorities and for new state administrations to clarify their positions on permits, utility costs, tax incentives and project pauses. Local measures and their final results may also affect individual developments. Those steps will show whether campaign pledges become formal policy or remain proposals.
For now, the confirmed development is the market drop and the election-driven reassessment of potential risks to AI infrastructure. The next evidence will come from official policy decisions and company disclosures about project schedules, costs and capacity. Until then, estimates of the amount of planned construction at risk remain forecasts.
Key Questions
How much did the Nasdaq fall on Nov. 5?
The Nasdaq Composite fell 5.52%, closing at 24,315.00, down 1,421.51 points. The Nasdaq-100 fell 6.36% to 26,629.81.
What was behind the selloff?
Investors focused on whether election results could lead to greater oversight, fewer incentives or higher costs for planned AI data centers. Those concerns were market interpretations; the source material did not report that new laws had already changed project plans.
What does the $2.5 trillion figure refer to?
Reuters attributed the estimated $2.5 trillion decline in market value to companies in the Nasdaq-100. It does not cover every company listed on Nasdaq and is not the amount of cash withdrawn from the companies.
Did the election stop AI data center construction?
No nationwide halt was confirmed. Some incoming governors reportedly pledged pauses or a moratorium, but the scope and implementation of those promises remain unclear. No new federal law had passed, according to the source material.
Source: ThorstenMeyerAI.com
